Strong showing by pub landlord ALE

ALE Property Group, the landlord to 87 pubs leased to the Woolworths-owned ALH Group, has reported net profit of $14.9 million for the year to June 30, 2013.

ALE reported a distributable profit of $31.7 million, up from $26.7 million last year.

This amounted to 16.32 cents per share, which exceeded guidance by 2 per cent.

"While property income increased, the most notable influence on distributable profit was a decrease in borrowing expense," the company said.

"As expected, borrowing expense decreased by around 22 per cent on the prior year as a result of the hedging restructure completed in December 2012."

ALE said its positive outlook for future market rent reviews was further enhanced by recent ALH-funded improvements at ALE's properties and the gaming regulatory changes in Victoria.

ALH yesterday (30th July) reported sales for the year of $1.5 billion, an increase of 22 per cent on the previous year or 19.7 per cent adjusted for the 53rd week.

Source: The Shout, 31 July 2013